Number two worldwide

Giant crypto exchange plans its EU headquarters in Vienna

Numerous crypto exchanges are now applying for licenses in EU countries, and Austria is also an interesting destination.

(Bild: ©stockcrafter - stock.adobe.com)

From 2025, cryptocurrency companies will only need a license in one EU country to offer their services throughout the EU. This is why Asian and American companies are increasingly entering the European market. Bybit from China, the world's second-largest crypto exchange by volume, is planning its EU headquarters in Austria. Vienna wants to develop into a hotspot in the international crypto scene.

The Austrian Financial Market Authority (FMA) expects around 20 cryptocurrency companies to apply for a license in the coming months. The most prominent of these is probably Bybit. The Chinese platform has 50 million customers worldwide and is now the second-largest crypto exchange in terms of trading volume. According to the company register, the company founded several companies in Austria in September and is based in Vienna's 22nd district. The company is currently looking for an office in a city center location.

A location and a "MiCAR license" in an EU country is a prerequisite for obtaining a license for the entire EU market from 2025 and thus enabling customers to trade in various cryptocurrencies (Bitcoin, Ethereum, etc.). Applications have been possible since 1 October; the FMA has received one license application so far, but more will follow.

Anyone offering trading in cryptocurrencies needs a license from the supervisory authority.

(Bild: APA/HELMUT FOHRINGER)

Austria as a location for crypto giants
The US companies Coinbase and Kraken have also already established a base in Ireland for this reason. Why did Bybit choose Austria of all places for its European headquarters? The domestic financial market supervisory authority also has something to do with it. On the one hand, it is highly regarded internationally, and on the other, it is also open-minded when it comes to virtual currencies. Its expertise in the crypto sector is very renowned.

Previously, some crypto exchanges have also attempted to enter the market via the Baltic States or Malta, but the supervisory authorities there have a less good reputation. A license there is not as highly regarded by regulators in other countries. "Austria has positioned itself well here and is trying to avoid mistakes from the past," says expert and Validvent founder Georg Brameshuber from the Digital Asset Association Austria. He is alluding to the case of N26 - an online bank founded by Viennese people that preferred Germany as a license location years ago.

Behind the trading platform Bybit is the Chinese owner and CEO Ben Zhou. The company is now based in Dubai. The platform recently doubled its market share within a year and continues to grow rapidly. After Binance, Bybit is the world's largest platform in terms of trading volume. The company has many professional traders as customers who trade via the platform. This means that it tends to appeal to a different target group than the Austro company Bitpanda, for example, which sees itself as an entry-level platform.

International competition is increasing
It will probably be some time before Bybit receives a license for the European market. It should be able to enter the market in the course of 2025. However, the provider can already build on a customer base, as numerous non-European online crypto service providers already have unregulated - i.e. without a license - users on the European market. Competition will intensify as a result of the change, according to which crypto banks will be able to gain easier access to the market and thus also start distribution. This also means new competition for the top dog in Austria. Bitpanda, Europe's leading provider for cryptocurrency trading, is based in Vienna.

If Bybit were to settle in Austria of all places, this would also significantly increase the appeal of the domestic location. This is because Bitpanda, the leading European crypto provider, and Bybit, the world's second largest exchange, would both be based in Vienna. "Austria is positioning itself as an attractive location for international players in the crypto world," says Brameshuber. "This is an opportunity for Austria to be at the forefront of such a growing industry."